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An operator working on final trim at Hudson Technologies in Ormond Beach is among more than 307,000 workers employed by over 17,000 manufacturers in Florida, according to Enterprise Florida figures. The Volusia Manufacturers Association says the Volusia-Flagler area is home to more than 400 of those manufacturers.

News-Journal file

FATIMA HUSSEINBUSINESS WRITER

Published: Sunday, January 20, 2013 at 5:30 a.m.

Last Modified: Sunday, January 20, 2013 at 9:14 p.m.

Earlier this month, Gov. Rick Scott proposed an exemption for manufacturers making equipment purchases from having to pay the state's 6 percent sales tax.

"In the upcoming legislative session, we are committed to building up Florida manufacturing jobs by eliminating the tax barriers on companies who purchase equipment," he stated in a news release announcing his proposal.

Mark Andrews, president of Hudson Technologies in Ormond Beach, said elimination of the tax could save his manufacturing company up to $70,000 a year. Hudson spends roughly $1 million a year on capital improvements."We would certainly be able to hire more people, spend more on infrastructure and pay more dividends to our owners," Andrews said. "It frees up the money."

While local manufacturers contacted for comment all said they would welcome a break on their taxes, some said they were unsure as to how much Scott's proposal would actually benefit them.

Maggie Morgan, owner of a small precision machining shop in Holly Hill called Magga Products, said if Scott's proposal does win approval by the state Legislature, she is not certain the savings would be enough to prompt her to add workers or to invest in new machinery. "I don't know, but I'm hopeful," she said.

Walter Warning, chairman of Viking Pure, a manufacturer in Edgewater, said "Anything that lessens the (tax) burden would be better," but expressed concern than the state could simply make up for the revenue shortfall by imposing new taxes or fees on other things.

"They've got to get revenue from some place," he said.

Nancy D. Stephens, executive director of Tallahassee-based Manufacturers Association of Florida, said the measure would make Florida competitive with other states that do not have a manufacturer's tax and would, in turn, attract new businesses to Florida.

"You would definitely have more people looking at Florida to locate and expand and it would spur capital investment," she said.

Florida is home to more than 17,000 manufacturers, employing more than 307,000 workers across the state, according to Enterprise Florida.

The Volusia-Flagler area is home to more than 400 manufacturers, according to Jayne Fifer, president of the Volusia Manufacturers Association.

Andrew Spar, president of the Volusia Teachers Association, however, expressed skepticsim that the tax cut for manufacturers would spur economic growth. He also said the loss of state revenues could result in hurting the local economy in other ways.

"We are going through difficult economic times, and for the past five years, our public schools have seen cut after cut," Spar said. The tax cut, he said, would directly affect Volusia County's public schools at a time when local manufacturers are decrying the lack of skilled workers. "Students must be trained in well-funded schools," he said.

Rob Ehrhardt, Volusia County's economic development manager, said he supports eliminating the tax. "Manufacturing is an industry that contributes to the growth of our economy in many ways, including higher wage jobs," he said.

"This proposal has the potential to create additional contributions by Volusia County manufacturing firms through increased investments in equipment, which in turn could lead to new job opportunities," he said.

Florida manufacturers have already gotten one break from the state beginning this year. On Jan. 1, a new state law went into effect that reduces the amount of productivity manufacturers have to prove -- 5 percent, down from 10 percent — in order to receive a sales tax exemption for their purchased machinery and equipment.

The Florida Legislature will consider eliminating the capital improvement tax for state manufacturers at its next session, which will begin in March.

Fifer, who supports Scott's proposed tax break for manfacturers, said of state lawmakers, "Hopefully, they'll vote for it."

<p>Earlier this month, Gov. Rick Scott proposed an exemption for manufacturers making equipment purchases from having to pay the state's 6 percent sales tax. </p><p>"In the upcoming legislative session, we are committed to building up Florida manufacturing jobs by eliminating the tax barriers on companies who purchase equipment," he stated in a news release announcing his proposal. </p><p>Mark Andrews, president of Hudson Technologies in Ormond Beach, said elimination of the tax could save his manufacturing company up to $70,000 a year. Hudson spends roughly $1 million a year on capital improvements."We would certainly be able to hire more people, spend more on infrastructure and pay more dividends to our owners," Andrews said. "It frees up the money." </p><p>While local manufacturers contacted for comment all said they would welcome a break on their taxes, some said they were unsure as to how much Scott's proposal would actually benefit them.</p><p>Maggie Morgan, owner of a small precision machining shop in Holly Hill called Magga Products, said if Scott's proposal does win approval by the state Legislature, she is not certain the savings would be enough to prompt her to add workers or to invest in new machinery. "I don't know, but I'm hopeful," she said. </p><p>Walter Warning, chairman of Viking Pure, a manufacturer in Edgewater, said "Anything that lessens the (tax) burden would be better," but expressed concern than the state could simply make up for the revenue shortfall by imposing new taxes or fees on other things. </p><p>"They've got to get revenue from some place," he said. </p><p>Nancy D. Stephens, executive director of Tallahassee-based Manufacturers Association of Florida, said the measure would make Florida competitive with other states that do not have a manufacturer's tax and would, in turn, attract new businesses to Florida. </p><p>"You would definitely have more people looking at Florida to locate and expand and it would spur capital investment," she said. </p><p>Florida is home to more than 17,000 manufacturers, employing more than 307,000 workers across the state, according to Enterprise Florida. </p><p>The Volusia-Flagler area is home to more than 400 manufacturers, according to Jayne Fifer, president of the Volusia Manufacturers Association. </p><p>Andrew Spar, president of the Volusia Teachers Association, however, expressed skepticsim that the tax cut for manufacturers would spur economic growth. He also said the loss of state revenues could result in hurting the local economy in other ways. </p><p>"We are going through difficult economic times, and for the past five years, our public schools have seen cut after cut," Spar said. The tax cut, he said, would directly affect Volusia County's public schools at a time when local manufacturers are decrying the lack of skilled workers. "Students must be trained in well-funded schools," he said. </p><p>Rob Ehrhardt, Volusia County's economic development manager, said he supports eliminating the tax. "Manufacturing is an industry that contributes to the growth of our economy in many ways, including higher wage jobs," he said. </p><p>"This proposal has the potential to create additional contributions by Volusia County manufacturing firms through increased investments in equipment, which in turn could lead to new job opportunities," he said. </p><p>Florida manufacturers have already gotten one break from the state beginning this year. On Jan. 1, a new state law went into effect that reduces the amount of productivity manufacturers have to prove -- 5 percent, down from 10 percent &mdash; in order to receive a sales tax exemption for their purchased machinery and equipment. </p><p>The Florida Legislature will consider eliminating the capital improvement tax for state manufacturers at its next session, which will begin in March. </p><p>Fifer, who supports Scott's proposed tax break for manfacturers, said of state lawmakers, "Hopefully, they'll vote for it."</p>